USD/CAD posts modest gains near mid-1.2500 as oil rebound loses steam
- USD/CAD stays in the positive territory following Tuesday's decline.
- WTI is losing more than 1% on Wednesday, trades below $68.
- US Dollar Index holds above 93.00 ahead of CPI data.
The USD/CAD pair closed in the negative territory on Tuesday as the sharp rebound witnessed in crude oil prices helped the commodity-related CAD outperform its American counterpart. However, the pair didn't have a difficult time limiting its losses on Wednesday and was last seen rising 0.15% on the day at 1.2540.
WTI turns south following Tuesday's recovery
On Tuesday, the risk-positive market environment helped the barrel of West Texas Intermediate (WTI) gains more than 2%. Nevertheless, WTI struggled to preserve its bullish momentum amid a lack of fundamental drivers and reversed its direction on Wednesday. As oıf writing, WTI was down 1.4% on a daily basis at $67.50.
On the other hand, the US Dollar Index (DXY) continues to edge higher after posting gains for the previous three trading days. Currently, the DXY is up 0.12% at 93.18.
Later in the session, the US Bureau of Labor Statistics will publish the July inflation report. Investors expect the Consumer Price Index (CPI) to decline to 5.3% on a yearly basis in July from 5.4%.
Additionally, Atlanta Federal Reserve Bank President Raphael Bostic, who said on Monday that the Fed could start reducing asset purchases between October and December, will be delivering a speech. There won't be any high-tier macroeconomic data releases featured in the Canadian economic docket.
Technical levels to watch for